A widely followed crypto-analyst says that Bitcoin (BTC) is still the top game for crypto market players despite a week that saw altcoin prices soar.
In a new strategy session, Benjamin Cowen recount his 781,000 YouTube subscribers that altcoins are risky even if their prices rise, as he believes the Bitcoin Dominance Index (BTC.D) will rise regardless of the direction BTC takes.
The BTC.D chart tracks the share of the total crypto market capitalization owned by Bitcoin. A bullish BTC dominance suggests that Bitcoin is rising faster than other crypto assets, or that altcoins are losing value as major crypto peaks rise. In a bearish scenario, a rising BTC dominance indicates that altcoins are falling faster than Bitcoin.
“Whether [BTC] bursts or breaks down, the [BTC] dominance should increase anyway. This is the thesis: that Bitcoin dominance should rise, Bitcoin break or crash…
Since we started in 2022 I’ve said altcoins just aren’t worth the risk compared to Bitcoin… I don’t think they’re worth the risk yet [but] it doesn’t mean that some of them haven’t bottomed out in their USD pairs.
Not only is BTC’s dominance level locked to rise, but Cowen also says that Bitcoin is the best game for investors because it will attract less attention from regulators.
However, he notes that altcoins could start thriving by early 2024 or the end of this year.
“Bitcoin is still the best game in terms of risk-adjusted return, so for the risk you’re taking, Bitcoin is still the best game now. Any fundamental reason why could that be? I think regulation…
Bitcoin won’t have the same type of regulatory scrutiny as the altcoin market, and I think 2023 is likely to be a tough year for altcoins in the context of those regulations. Once we get into 2024 and maybe even late 2023, I’ll take off my maxi hat and I’ll probably [get] back on the altcoin market.
Bitcoin is changing hands for $20,703 at the time of writing, a fractional drop on the day.
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